Robert has been saving his money and decides he wants to invest it. Which of the following is considered the most speculative?
A) A bank account
B) Corporate bonds
C) Real estate
D) Derivatives
E) Preferred stock

Question

Quizplus · Accepted Answer

Derivatives are considered the most speculative as they are financial instruments that derive their value from underlying assets, and their worth can fluctuate heavily. They are often used for hedging, but can also be used for speculation, leading to high risk and potential high returns.

Robert Has Been Saving His Money and Decides He Wants